What is the impact of compounding interest on the value of a high-yield savings account?

A highyield savings account refers to a savings account that offers a higher interest rate compared to a regular savings account. The impact of compounding interest on the value of a highyield savings account is significant. With compounding, the interest earned on the initial deposit is reinvested and added to the principal amount. As a result, the interest earned in subsequent periods is calculated based on the increased principal amount, leading to accelerated growth of the account balance over time. The more frequently the interest is compounded, the faster the account balance grows. This can help individuals in India maximize their savings and achieve their financial goals more effectively.